A new law that goes on the books this weekend in South Dakota boosts funding for the electronic system used to run the state’s IFTA program.
Effective Sunday, July 1, a new law establishes a license fee and a renewal fee for motor carriers licensing under the International Fuel Tax Agreement. Fees for decals and mailing are also being implemented.
Department of Motor Vehicles Director Debra Hillmer said the fees are needed to help cover the cost of setting up an electronic filing system for collecting IFTA fees.
Hillmer told lawmakers earlier this year these user fees are designed to cover some of the additional costs for the upgrades of the filing system.
The previous program cost the state about $90,000 a year to operate. The expense to keep the new electronic system running is $120,000 annually.
Administrative funds now are used to operate the program.
To help cover the increased costs for the state, the new law requires truck drivers to pay $10 to set up an account. Renewals will also cost $10 each year.
Each set of decals will be $1.50, with a $1 fee charged to mail the decals.
The state DMV has never charged an issuance fee. Decals cost 50 cents.
State estimates put the additional revenue from the fees at about $40,000. In addition, the fees make registration costs more consistent with what motorists pay when registering their vehicles.
The IFTA fees also more closely reflect costs in neighboring states.
North Dakota charges $20 for licenses while Iowa and Nebraska charge $10. Decals in neighboring states run between 50 cents and $2.50.
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